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| 1 | |
Nolan works at PrimeAd, an advertising agency that has a centralized system. He controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or services. Identify Nolan's position in the organization. |
| | A) | Accounts executive |
| | B) | Production manager |
| | C) | Marketing research executive |
| | D) | Copywriter |
| | E) | Advertising manager |
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| 2 | |
An advantage of the _____ system of organizing is that each brand receives concentrated managerial attention, resulting in faster response to both problems and opportunities. |
| | A) | decentralized |
| | B) | hierarchical |
| | C) | span of control |
| | D) | tactical |
| | E) | centralized |
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| 3 | |
The main reason outside advertising agencies are used is because: |
| | A) | they allow for more top management involvement in advertising decisions. |
| | B) | the Federal Trade Commission recommends outside firms in order to avoid accusations of insider trading. |
| | C) | they provide the client with the services of highly skilled individuals who are specialists in their fields. |
| | D) | they also work with many other competitive firms. |
| | E) | the outside agencies are able to respond more quickly to environmental changes than any other organizational system. |
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| 4 | |
In full service advertising agencies, copywriters would be a part of: |
| | A) | media department. |
| | B) | creative services. |
| | C) | research department. |
| | D) | traffic department. |
| | E) | marketing services. |
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| 5 | |
Creative boutiques: |
| | A) | are departments in most full-service advertising agencies. |
| | B) | are used when an advertiser wants to reach a market that is not responsive to ads in traditional media. |
| | C) | are types of full-service agencies that limit their activities to guerrilla marketing campaigns. |
| | D) | only provide creative services to their clients. |
| | E) | coordinate IMC campaigns so that the campaigns have consistent messages. |
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| 6 | |
Which of the following statements is true about how advertising agencies are compensated for their services? |
| | A) | The traditional method of compensating agencies is the payment of a flat-rate plus a percentage of sales. |
| | B) | Agencies receive a 20 percent commission from each client. |
| | C) | The commission paid to agencies is the same no matter what media is used. |
| | D) | Most agencies today do not use negotiated commissions because they are time-consuming. |
| | E) | Traditionally agencies were compensated through the commission system. |
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| 7 | |
The advertising agency's evaluation process involves two types of assessments. They are the financial audit and: |
| | A) | qualitative audit. |
| | B) | social audit. |
| | C) | quantitative audit. |
| | D) | creative assessment. |
| | E) | cumulative effect. |
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| 8 | |
Speculative presentations are: |
| | A) | another name given to storyboards. |
| | B) | the name given to lavish, electronic billboards. |
| | C) | a technique used by ad agencies for gaining new clients. |
| | D) | a source of a great deal of conflict between agencies and their clients. |
| | E) | presentations given in the stock market. |
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| 9 | |
A typical direct-response agency is divided into three main departments. They are: |
| | A) | research, account relations, and creative. |
| | B) | account management, creative, and media. |
| | C) | research, list management, and creative. |
| | D) | account management, list management, and creative. |
| | E) | research, account relations, and list management. |
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| 10 | |
In terms of the participants in the integrated marketing communication process, printers, video production houses, and package design firms would all be characterized as: |
| | A) | clients. |
| | B) | specialized advertising agencies. |
| | C) | creative boutiques. |
| | D) | collateral services. |
| | E) | marketing communication specialists organizations. |
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